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Zawya
12-06-2025
- Business
- Zawya
Egypt: African Development Bank to provide $184.1 million for Africa's largest solar energy and battery storage project
The Board of Directors of the African Development Bank Group ( has approved a financing package of up to $184.1 million to support the development of the Obelisk 1-gigawatt solar photovoltaic project and 200MWh battery energy storage system in Egypt, which will be Africa's largest solar power plant. Located in Qena Governorate in southern Egypt, the project entails the design, construction, operation, and maintenance of a photovoltaic power plant with an integrated battery energy storage system. The Egyptian Electricity Transmission Company will be the sole off-taker under a 25-year Power Purchase Agreement. The project's total cost is estimated at more than $590 million. The Bank Group's financing package includes $125.5 million of ordinary resources, as well as concessional funding from Bank Group-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth $20 million, and the Canada-African Development Bank Climate Fund ($18.6 million), a partnership of the Bank Group and the Government of Canada. A further $20 million will come from the Climate Investment Funds' Clean Technology Fund, with additional financing to be mobilized from a consortium of development finance institutions. Under Egypt's Nexus of Water, Food, and Energy (NWFE) platform, Obelisk has been granted a Golden License by the government, which recognizes it as a strategic initiative that will contribute to addressing Egypt's energy constraints and advancing its energy transition. Dr. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development and International Cooperation, said 'the Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank. The goal of NWFE's energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030.' The project, expected to be fully operational by the third quarter of 2026, will generate an estimated 2,772 gigawatt-hours of clean, reliable, and affordable energy annually to the national grid. The battery energy storage system will help meet peak evening demand with renewable power while also mitigating the variability of solar power generation. The project is expected to reduce annual carbon dioxide (CO 2) emissions by approximately one million tons and create about 4,000 jobs during construction and 50 permanent jobs during operation, with a special focus on women and youth employment. 'Obelisk is another landmark development under NWFE that leverages on Egypt's and the African Development Bank's leadership as well as commitment to harnessing the country's renewable energy to enhance the resilience of the country's energy supply to meet its fast-growing energy demand sustainably,' said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth. 'This project also contributes to Egypt's ambition of producing 42 percent of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions,' Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said: 'Canada is proud to support solar energy development in Egypt. This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people. We are pleased to collaborate with the African Development Bank and other partners in supporting Egypt's transition to a sustainable, low-carbon economy.' The Obelisk Solar Project aligns with the African Development Bank's Ten-Year Strategy, its New Deal on Energy for Africa, and its Country Strategy Paper for Egypt as well as SEFA's strategic framework which aims to accelerate African countries energy transition by increasing the share of renewables and catalyzing commercial capital mobilization in the power sector. The project also advances Egypt's commitment to achieve 42 percent generation capacity from renewable energy sources by 2030. 'This project exploits the abundant renewable energy potential in Africa and demonstrates how strong partnerships and innovative solutions contribute to balancing three core objectives in the energy sector, namely energy security, affordability, and sustainable economic development,' said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank. 'It has high potential for replicability across the continent.' Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contact: Olufemi Terry Communication and External Relations Department Technical Contact: James Otto Senior Investment Officer Energy Financial Solution and Policy Regulations Department About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
Zawya
12-06-2025
- Business
- Zawya
AfDB backs Africa's largest solar power plant in Egypt with $184.1mln package
Arab Finance: The African Development Bank Group (AfDB) has approved a $184.1 million financing package to support the development of the Obelisk 1-gigawatt solar photovoltaic project and 200-megawatt-hour battery energy storage system in Egypt, as per a statement. Located in Qena, the project is expected to be Africa's largest solar power plant, with a total cost estimated at over $590 million. It entails the design, construction, operation, and maintenance of a photovoltaic power plant with an integrated battery energy storage system. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year Power Purchase Agreement. The package includes $125.5 million of ordinary resources, as well as concessional funding from AfDB-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth $20 million, and the Canada-African Development Bank Climate Fund ($18.6 million), a partnership of AfDB and the Government of Canada. The Climate Investment Funds' Clean Technology Fund will finance a further sum of $20 million, along with an additional financing from a consortium of development finance institutions. Under Egypt's Nexus of Water, Food, and Energy (NWFE) program, Obelisk has been granted a Golden License and is recognized as a strategic initiative that will contribute to addressing Egypt's energy constraints and advancing its energy transition. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development and International Cooperation, commented: 'The Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank.' 'The goal of NWFE's energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030,' Al-Mashat added. The project is set to be fully operational by the third quarter of 2026 and is expected to generate an estimated 2,772 gigawatt-hours of clean, reliable, and affordable energy annually to the national grid. It is projected to reduce annual carbon dioxide (CO2) emissions by approximately one million tons and create about 4,000 jobs during construction and 50 permanent jobs during operation, with a special focus on women and youth employment. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
27-05-2025
- Business
- Zawya
Over 6,000 projects completed in Upper Egypt with $642mln investment: minister
Egypt - Manal Awad, Egypt's Minister of Local Development, met with a World Bank delegation to assess progress in the Upper Egypt Local Development Programme and explore ways to strengthen the region's business environment and private sector engagement. The delegation included Elin Olafsen, Senior Private Sector Specialist, and Zeeshan Karim, Senior Urban Specialist, along with other World Bank representatives. Also in attendance were Hisham El-Helbawy, the Minister's Assistant for National Projects and Director of the Upper Egypt Programme, and members of the programme's coordination office. Awad highlighted the longstanding partnership with the World Bank since the programme's launch in 2018, expressing gratitude for the Bank's continued support, which has led to substantial achievements across key governorates. She described the initiative as a flagship model of development cooperation between Egypt and the World Bank. To date, the programme has implemented more than 6,000 projects with total investments exceeding EGP 32bn, directly improving infrastructure and public services for approximately 8.2 million citizens in Sohag, Qena, Minya, and Assiut. Key focus areas include roads, sanitation, and electricity, with 40% of investments directed toward economic development and institutional capacity-building at the local and technological levels. Awad noted that the programme provides a scalable model for development across other governorates. The initiative has also advanced Egypt's decentralisation agenda and significantly increased private sector participation, benefiting over 72,000 companies. Surveys show that around 85% of business owners reported satisfaction with the programme's support—an encouraging sign for the government's wider 2024–2027 national reform plan. El-Helbawy provided updates on the World Bank delegation's recent field activities, including site visits in the four governorates, consultations with governors, and meetings with ministry officials. Discussions focused on enhancing infrastructure in industrial zones and supporting economic clusters in Qena and Sohag. He also pointed to tangible improvements in industrial zone management, service delivery, private sector engagement, and local revenue generation. Elin Olafsen praised the programme's role in boosting regional competitiveness, highlighting her visits to the medicinal and aromatic plants cluster in Qena and the industrial zone in Qeft. She commended the strong coordination between the Ministry of Local Development and the Industrial Development Authority in fostering growth in Upper Egypt's industrial sector. Olafsen reaffirmed the World Bank's commitment to supporting Egypt's efforts to enhance the business climate, digitise local services, and replicate successful models—particularly the economic cluster approach—in other governorates. The Bank's representatives expressed strong support for the cluster-based strategy, noting that 12 economic clusters have already been implemented, with most nearing completion. Full rollout is anticipated by October 2025. Zeeshan Karim described the Upper Egypt programme as one of the World Bank's most impactful initiatives in Egypt. She highlighted its achievements in local governance, job creation, and economic development, and reiterated the Bank's dedication to supporting Egypt's broader goals of decentralisation and sustainable urban and economic growth. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
